Magnolia Oil & Gas (MGY) investor relations material

Executive summary

• Achieved Q2 2026 adjusted net income of $184 million ($0.99/share), with net income attributable to Class A Common Stock at $181.8 million and diluted EPS of $0.97; production volumes grew 8% YoY to 106.1 Mboe/d, driven by Giddings asset performance and higher oil/NGL prices.

• Announced definitive agreement to acquire WildFire Energy for $4.06 billion, adding 810,000 net acres and 53,000 BOE/d production, expected to close late Q3 2026, funded by a balanced mix of equity, cash, and assumed debt.

• Returned ~$80 million to shareholders in Q2 via dividends and buybacks, with a 9% increase in quarterly dividend to $0.18/share and 1.7–3.0 million shares repurchased; 9.9 million shares remain under authorization.

• Total revenues for Q2 2026 were $478.8 million, up 50% YoY, with operating income margin at 50–51% and adjusted EBITDAX at $370 million.

• Free cash flow was $234.6–$235 million, up over 100% YoY, with a cash balance of $295.9–$296 million at quarter-end.

Financial highlights

• Q2 2026 adjusted net income: $184 million; adjusted EBITDAX: $370 million; revenue: $478.8–$479 million, up 50% YoY.

• Free cash flow: $234.6–$235 million, up 118% YoY; return on capital employed annualized at 39%.

• Drilling and completion capital: $125 million (34% of adjusted EBITDAX), lowest reinvestment rate since 2022.

• Lease operating expenses per boe were $5.01; adjusted cash operating margin was $38.05/boe (77%).

• Cash balance at quarter-end was $295.9–$296 million, up 18% YoY.

Outlook and guidance

• Raised full-year 2026 standalone production growth guidance to 6% from 5%.

• Q3 2026 D&C capital expected at $115 million; production to remain at ~106,000 BOE/d.

• Full-year capital spending guidance: $440–$480 million.

• Fully diluted share count post-WildFire close projected at ~269 million.

• Oil price differentials expected at a $3/bbl discount to Magellan East Houston in Q3.